Hong Kong, August 2026

Hong Kong’s residential property market is entering a new phase of recovery, with centrally located and strategically positioned assets continuing to demonstrate strong underlying value. Recent 2026 market data indicates that residential prices have recovered materially from the March 2025 trough, while demand for luxury residential properties across Hong Kong Island remains relatively resilient.

According to JLL, overall Hong Kong residential prices increased 7.4% during the first five months of 2026, while total residential transaction volume rose 44.2% year-on-year. Compared with the March 2025 trough, residential prices had recovered approximately 13%.

CBRE reported an even stronger recovery through the first half of the year. By June 2026, residential prices had risen 12.7% year-on-year and 7.9% during the first half of 2026. Monthly residential transactions reached 7,650 in June, the highest monthly level since the removal of property cooling measures in the first quarter of 2024.

Central Hong Kong: Value Is Driven by More Than Floor Area

Within Central Hong Kong, property valuation cannot be determined solely by an average price per square foot.

The value of an individual property is influenced by a combination of location, scarcity, asset quality, views, accessibility, building age, redevelopment potential and income-generating capability.

Within the market area managed and analysed by Susdev Group Hong Kong Ltd., the principal focus includes:

• Central
• Mid-Levels
• Mid-Levels West
• Sheung Wan
• Admiralty
• Selected surrounding areas benefiting from the continued expansion and evolution of Hong Kong’s Central Business District.

These locations benefit from a significant location premium, particularly for properties offering convenient access to the financial core and premium lifestyle infrastructure.

Luxury Transactions Continue to Establish New Benchmarks

Recent transactions demonstrate the resilience of the luxury and super-prime segments.

CBRE recorded several notable transactions in Mid-Levels during May–June 2026, including:

• 21 Borrett Road Phase 2: approximately HK$126,000 per sq ft.
• Central Residence by the Park: approximately HK$68,000 per sq ft.
• The Legacy, Mid-Levels: approximately HK$66,835 per sq ft.
• High Peak, Mid-Levels West: approximately HK$62,677 per sq ft.
• 39 Conduit Road: approximately HK$54,039 per sq ft.

These transactions illustrate the ability of prime locations and high-quality assets to command substantial premiums even as the broader market transitions from a recovery phase toward consolidation.

Susdev Group’s Valuation Perspective

From the perspective of Susdev Group Hong Kong Ltd., property valuation in Central Hong Kong in 2026 should be approached through an asset-specific valuation framework, rather than applying a single average market rate across an entire district.

Three categories of assets are particularly well positioned to preserve their premium:

1. Trophy & Super-Prime Assets
Large residences, exceptional locations, superior views, high-quality specifications and extremely limited supply.

2. Prime Residential Assets
Properties located within strong micro-locations in Central and Mid-Levels, offering efficient access to the CBD, transportation and premium amenities.

3. Strategic Redevelopment / Value-Add Assets
Older properties with strategically valuable locations, particularly assets with potential for consolidation, redevelopment or substantial upgrading.

CBRE notes that the pipeline of large-sized luxury residential units remains constrained, while demand for high-quality properties in established luxury districts continues to be supported by high-net-worth buyers.

2026 Outlook: Growth, but Increasingly Selective

Major property research houses remain broadly positive on Hong Kong’s residential market, although their forecasts differ in magnitude.

JLL expects prices in the small- and medium-sized residential segment to rise by approximately 5–10% during 2026, while luxury residential capital values are forecast to increase by approximately 0–5%.

Cushman & Wakefield has a more optimistic view, forecasting Hong Kong residential prices to rise by close to 10% in 2026, supported by improving transaction activity and demand from local buyers, Mainland Chinese purchasers and incoming talent.

CBRE’s July 2026 assessment suggests that the residential market may enter a near-term consolidation phase after the significant price gains already achieved. Nevertheless, luxury residential assets remain supported by limited supply and continued demand for wealth-preservation properties.

Market Analysis Area: Central Hong Kong
Managed by: Susdev Group Hong Kong Ltd.
Publication: Susdev Group Hong Kong — Property Market Intelligence
Date: August 2026